How do founder-CEOs sell their remaining ownership shares? Theory and evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xu Niu
Keyword(s):  
Final Stage ◽  
Design Methodology ◽  
High Growth ◽  
Theoretical Models ◽  
Empirical Methods ◽  
Managerial Ability ◽  
Stock Trading ◽  
Content Type ◽  
Growth Firms ◽  
High Volatility

PurposeIn this paper, the author attempts to answer an important question upon founder-CEOs' exiting: How do they sell their remaining ownership shares? The literature has largely been silent on this question, and therefore is missing an important piece of the puzzle on the final stage of the founding entrepreneurs' involvement in their companies.Design/methodology/approachThe author uses both theoretical models and empirical methods to examine how founder-CEOs sell their remaining ownership shares.FindingsThe author finds that founder-CEOs of high-growth firms and those with high managerial ability are more likely to sell remaining ownership shares gradually rather than suddenly. Moreover, if either the growth or the managerial ability is high, founder-CEOs managing firms with high volatility tend to sell gradually.Originality/valueThis paper provides insights into the final stage of founding entrepreneurs' involvement in companies. The methodology of pattern recognition also helps investors and regulators in tracking and monitoring stock trading of founders and other company insiders.

scholarly journals High-growth firms and scale-ups: a review and research agenda

2019 ◽  
Vol 54 (1) ◽  
pp. 96-111
Author(s):  
Guilherme Fowler A. Monteiro
Keyword(s):  
Research Agenda ◽  
Design Methodology ◽  
Scale Up ◽  
High Growth ◽  
Levels Of Analysis ◽  
Future Research ◽  
Content Type ◽  
Growth Firms ◽  
Different Levels

Purpose This paper aims to conduct an extensive review and advances a framework for the literature of high-growth firms (HGFs) and scale-ups. Design/methodology/approach This paper takes the form of a literature review. Findings The author makes three specific contributions. First, he presents a broad review of high growth in firms, shedding light on the different levels of analysis. Second, he advances a characterization of scale-up companies to enable a better basis for discussion. Finally, he identifies gaps in the existing literature and suggest paths for future research. Originality/value The interest in HGFs and those referred to as scale-ups has increased considerably in recent years. Despite this trend, existing studies still have conceptual divergences and a gap separating theoretical inputs from the actual experiences of entrepreneurs.

Determinants of high-growth university spin-offs in Spain

2019 ◽  
Vol 10 (4) ◽  
pp. 890-904 ◽  
Author(s):  
Sara Fernández-López ◽  
David Rodeiro-Pazos ◽  
Fernando García González ◽  
María Jesús Rodríguez-Gulías
Keyword(s):  
Significant Relationship ◽  
Design Methodology ◽  
Job Creation ◽  
High Growth ◽  
Economic Research ◽  
Content Type ◽  
University Entrepreneurship ◽  
Probit Models ◽  
Growth Firms ◽  
Knowledge Intensive

Purpose This study aims to determine that the factors that lead to university spin-offs (USOs) high-growth firms (HGFs). In recent years, HGFs have been a topic of growing interest in the field of economic research because of these companies’ capacity for job creation and the dynamism they bring to the growth of the economy. In parallel, companies that are born of knowledge or technology developed at universities, known as university spin-offs, have also received attention from the literature in entrepreneurship. Design/methodology/approach In this study, to analyse the extent to which USOs have become HGFs, a sample of 237 Spanish companies with university origins for a period of study from 2007 to 2014 were used. To contrast the present study’s hypotheses, eight different models were estimated using probit models. Findings The results show that factors such as number of employees, internationalization, profitability and indebtedness positively affect the probability that a USO will become an HGF. However, for age, industry, innovation, the presence of venture capital and productivity, no statistically significant relationship could be found. Originality/value This study contributes to the literature in HGFs and university entrepreneurship in different ways. First, to the best of the authors’ knowledge, no previous studies have analysed the determinants of becoming an HGF from a USO. Second, hypotheses that, until now, had not been analysed in previous studies, in particular the fact of being a knowledge-intensive company, are tested. Third, the results obtained allow the establishment of recommendations to improve policies to support HGF-USO.

What does the new 2011-12 IIP series tell about the Indian manufacturing sector?

2018 ◽  
Vol 11 (2) ◽  
pp. 90-106
Author(s):  
Radhika Pandey ◽  
Amey Sapre ◽  
Pramod Sinha
Keyword(s):  
Design Methodology ◽  
Manufacturing Sector ◽  
High Growth ◽  
Industrial Output ◽  
Content Type ◽  
Annual Survey ◽  
Two Measures ◽  
Indian Manufacturing Sector ◽  
Practical Implications

Purpose This paper aims to discuss the changes in the new 2011-12 base year series of the Index of Industrial Production (IIP) to determine whether the new series has improved the understanding of the growth in the manufacturing sector. Design/methodology/approach This paper develops a simple framework to separately estimate the contribution of value- and volume-based commodities in the growth of the manufacturing index. The authors present a case study by analysing the growth performance of IIP drugs and pharmaceuticals sector by comparing it with real net sales of a common sample of firms in this segment. Findings The authors find that growth in value-based commodities contributes significantly in moving the index in either direction, and that high growth in value-based commodities coincides with periods of low inflation. On comparability, using real net sales as an alternate indicator of industrial output for the pharmaceuticals sector, the authors find that IIP and real net sales show contrasting trends, thereby raising issues of reliability. The authors also find that the IIP shows a disconnect with growth rates from Annual Survey of Industries for several industries. Practical implications The divergence between two measures of industrial activity raises crucial questions on the representativeness of the IIP. Originality/value The study builds a framework to separately estimate the contribution of value- and volume-based commodities in the growth of the manufacturing index.

Two decades of business negotiation research: an overview and suggestions for future studies

2017 ◽  
Vol 32 (4) ◽  
pp. 487-504 ◽  
Author(s):  
Henrik Agndal ◽  
Lars-Johan Åge ◽  
Jens Eklinder-Frick
Keyword(s):  
Literature Review ◽  
Design Methodology ◽  
Theoretical Models ◽  
Research Field ◽  
Statistical Testing ◽  
Content Type ◽  
Business Negotiation ◽  
Future Studies ◽  
Negotiation Research ◽  
Practical Implications

Purpose This paper aims to present a review of articles on business negotiation published between 1995 and 2015. Design/methodology/approach This literature review is based on 490 articles on business negotiation. Findings When analyzing the conceptual underpinnings of this field, two paradigms emerge as dominant. The most prominent paradigm is a cognitive, psychological approach, typically relying on experiments and statistical testing of findings. The second dominating paradigm is a behavioral one, largely concerned with mathematical modeling and game-theoretical models. Practical implications Besides offering a description of the characteristics adhered to the business negotiation field, this paper will also suggest recommendations for further research and specify areas in which the research field needs further conceptual and empirical development. Originality/value This literature review serves to be the first representation of the characteristics adhered to the budding research field of business negotiation.

scholarly journals Better than before: the resilient organization in crisis mode

2018 ◽  
Vol 39 (1) ◽  
pp. 32-42 ◽  
Author(s):  
Epaminondas Koronis ◽  
Stavros Ponis
Keyword(s):  
Crisis Management ◽  
Design Methodology ◽  
Organizational Characteristics ◽  
Managerial Ability ◽  
Organizational Survival ◽  
Research Directions ◽  
Learning Abilities ◽  
Content Type ◽  
Practical Implications ◽  
Better Than

Purpose The paper aims to adopt a strategic view of organizational survival and argue that preparedness, responsiveness, adaptability and learning abilities constitute organizational drivers of resilience and provide a new direction on crisis management. Design/methodology/approach As a conceptual and literature exploration, the methodological focus is to combine various concepts within a unified model for resilience. Findings The proposed conceptual model highlights the need for strategic reconfigurations toward the construction of a resilience culture and the development of a supporting social capital in organizations. It also portrays organizational survival and sustainability as being dependent on strategic characteristics rather than on the managerial ability to handle situations and manage crisis. Research limitations/implications In this paper, implications, methodological concerns in the study of resilience and further research directions have been presented. Practical implications The paper approaches a new way of thinking about crises and provides a set of cultural and organizational characteristics that would increase resilience and crisis management abilities. Originality/value While organizations are nowadays more than ever affected by disruptions and crises, their inherent ability and strategies to protect their sustainability have been undertheorized. This paper aims at contributing to a growing and fruitful discussion.

scholarly journals Leverage and firm investment: the role of information asymmetry and growth

2019 ◽  
Vol 27 (1) ◽  
pp. 56-73 ◽  
Author(s):  
Albert Danso ◽  
Theophilus Lartey ◽  
Samuel Fosu ◽  
Samuel Owusu-Agyei ◽  
Moshfique Uddin
Keyword(s):  
Information Asymmetry ◽  
High Growth ◽  
Firm Investment ◽  
Financial Leverage ◽  
Content Type ◽  
Growth Firms ◽  
The Impact ◽  
The Relationship ◽  
Role Of Information

PurposeThis paper aims to demonstrate how financial leverage impacts firm investment and the extent to which this relationship is conditional on the level of information asymmetry as well as growth.Design/methodology/approachThe paper relies on data from 2,403 Indian firms during the period 1995-2014, generating a total of 19,544 firm-year observations. Analysis is conducted by using various panel econometric techniques.FindingsDrawing insights from agency theories, the paper uncovers that financial leverage is negatively and significantly related to firm investment. It is also observed that the impact of financial leverage on firm investment is significant for high information asymmetric firms. Finally, the paper shows that the relationship between leverage and firm investment is significant for low-growth firms. However, no significant relationship is found between leverage and investment for high-growth firms.Originality/valueThis paper provides fresh evidence on the leverage–investment nexus and, to the authors’ knowledge, it the first paper to examine the extent to which this leverage–investment relationship is driven by the level of information asymmetry.

Segmentation in intangible heritage of humanity (ICH) events: the Oruro Carnival

2019 ◽  
Vol 10 (2) ◽  
pp. 81-94 ◽  
Author(s):  
Jesús Claudio Pérez-Gálvez ◽  
Gema Gomez-Casero ◽  
Juan Choque Tito ◽  
Carol Angélica Jara Alba
Keyword(s):  
Cultural Heritage ◽  
Design Methodology ◽  
Theoretical Models ◽  
Intangible Cultural Heritage ◽  
Content Type ◽  
Emotional Bonding ◽  
Cultural Event ◽  
Emotional Perception ◽  
Intangible Heritage

Purpose The purpose of this paper is to characterize the international tourists who visit a cultural event, such as the Oruro Carnival (Bolivia), that is catalogued as Intangible Cultural Heritage of Humanity by UNESCO. Design/methodology/approach To achieve this purpose, a segmentation is made based on the combination of two theoretical models used and contrasted in similar research: the model of McKercher (2002), based on the cultural motivations to go to a destination, and that of Poria et al. (2003), based on the emotional perception of the visitor in relation to the heritage they visit. Findings Four types of tourists are thus identified: alternative, cultural, emotional and patrimonial. Likewise, the research includes an assessment of the most relevant tourist attributes linked to the Oruro Carnival, which is much more positive among international tourists with greater cultural motivation and emotional bonding. Originality/value The principal originality factor and innovation is analysing the cultural motivations and the emotional perception of the visitor in relation to the heritage they visit.

How does cluster location and intellectual capital impact entrepreneurial success within high-growth firms?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yama Temouri ◽  
Vijay Pereira ◽  
Glenn W. Muschert ◽  
Vikash Ramiah ◽  
Michael Babula
Keyword(s):  
Knowledge Management ◽  
Intellectual Capital ◽  
High Growth ◽  
Probit Model ◽  
Positive Influence ◽  
Research Model ◽  
Entrepreneurial Success ◽  
Content Type ◽  
Cluster Membership ◽  
Growth Firms

PurposeThe purpose of this paper is to examine the role of intellectual capital and knowledge management in the entrepreneurial success of firms through a research model which is subsequently tested empirically.Design/methodology/approachThe paper utilises the knowledge-based perspective to formulate three sets of hypotheses which the authors subsequently test in the empirical analysis on data derived from the Orbis database, which includes over 1-million data points from approximately 240,000 firms across 174 geographic subdivisions of economic regions in 14 European countries, from 2010 to 2013. The analysis utilises probit model regressions on the likelihood of becoming a high-growth firms (HGF), in the presence of a number of control factors including firm age, firm size, tangible assets, foreign ownership, competitiveness (via Herfindahl index), return on assets, industry sector and country location.FindingsFindings from our analysis suggest that investments in intangible assets and generating patents from research and development (R&D) efforts is positively related to the likelihood of becoming a HGF. In addition, cluster membership seems to be a positive influence on becoming a HGF, however the moderating impact of intangible investments and patents is less clear in clusters.Research limitations/implicationsThe authors highlight the mixed effects from cluster membership and the beneficial impact from intellectual capital and knowledge management in achieving high growth firm status.Originality/valueThe authors derive and test our research model, which outlines the interrelationship of the various factors leading to firms becoming high-growth firms. The results suggest that there may be further fruitful ground for future investigation in the intersections of knowledge management and intellectual capital concepts within entrepreneurial contexts.

Using the eurostat-OECD definition of high-growth firms: a cautionary note

2015 ◽  
Vol 4 (1) ◽  
pp. 50-56 ◽  
Author(s):  
Sven-Olov Daunfeldt ◽  
Dan Johansson ◽  
Daniel Halvarsson
Keyword(s):  
Small Firms ◽  
High Growth ◽  
Growth Patterns ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Level Data ◽  
Growth Firms ◽  
Definition Of ◽  
Practical Implications

Purpose – High-growth firms (HGFs) have attracted an increasing amount of attention from researchers and policymakers, and the Eurostat-Organisation for Economic Co-operation and Development (OECD) definition of HGFs has become increasingly popular. The paper aims to discuss this issue. Design/methodology/approach – The authors use a longitudinal firm-level data set to analyze the implications of using the Eurostat-OECD definition. Findings – The results indicate that this definition excluded almost 95 percent of surviving firms in Sweden, and about 40 percent of new private jobs during 2005-2008. Research limitations/implications – The proportion of small firms and their growth patterns differ across countries, and the authors therefore advise caution in using this definition in future studies. Practical implications – Policy based on the Eurostat-OECD definition of HGFs might be misleading or even counterproductive. Originality/value – No previous studies have analyzed the implications of using the Eurostat-OECD definition of HGFs.

The Extended Project Qualification

2013 ◽  
Vol 3 (1) ◽  
pp. 66-77 ◽  
Author(s):  
David William Stoten
Keyword(s):  
Mixed Methods ◽  
Final Stage ◽  
Design Methodology ◽  
Independent Learning ◽  
Content Type ◽  
Mixed Methods Approach ◽  
Academic Literature ◽  
Statistical Reliability ◽  
The Future ◽  
Three Stages

Purpose – The purpose of this paper is to investigate how the Extended Project Qualification (EPQ) is viewed by students and teachers and its value as a vehicle to promote self-directed independent learning. Design/methodology/approach – A mixed methods approach was adopted in three stages. Stages 1 and 2 structured questionnaires were issued to students and teachers were interviewed in a third and final stage. The second questionnaire relating to students’ views were analysed for statistical reliability using the χ2-test. Findings – The research suggests that EPQ is a possible vehicle to promote independent learning and negates some of the more negative aspects associated with classroom-based learning. Research limitations/implications – This research was based on research undertaken at two Sixth Form Colleges (SFCs). Although insightful and a useful description, it cannot claim to reflect the experience of EPQ at every institution in the SFC sector. Originality/value – The SFC sector is rarely reported on in the academic literature. This paper also reports on a relatively new and important initiative within the sector and offers a possible view of the future in the classroom.

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